Markets starting to take threat of yen intervention seriously

Tokyo

A BARRAGE of warnings from senior officials led by Finance Minister Taro Aso that Japanese authorities will not stand by and watch the yen continue to surge in value gained traction on Friday, causing the currency to give back some of its recent gains and reversing part of this week's heavy drop in Tokyo stock prices.

After Mr Aso declared on Friday morning that the government would take action as needed against what he called the "one-sided" recent moves in the yen, the Japanese currency retreated somewhat from its 17-month high to close in Tokyo trading at 108.78 to the dollar, while also weakening against other currencies